Final answer:
The bond equity explosion in the 80s was due to asset bubbles and leverage cycles, specifically during the dot-com and housing market booms.
Step-by-step explanation:
The bond equity explosion in the 80s can be attributed to various factors such as asset bubbles and leverage cycles. During the dot-com boom, the stock market experienced a significant increase in value, which was not sustainable. When stock values dropped, it contributed to a recession in 2001. Similarly, housing prices during the mid-2000s saw an unsustainable increase, leading to a housing bubble and subsequent recession in 2007.